Supply-side theorists presented evidence that after the 1964 tax cut, tax revenues ________. But at the time, ________ monetary policy helped to produce that result, a factor ignored or not understood by the Reagan administration.

Question

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Supply-side theorists argued that the 1964 tax cut incentivized economic growth, leading to an increase in tax revenues. However, this argument ignores the fact that an expansionary monetary policy was also implemented at the time, which helped to stimulate economic activity and increase tax revenues. The Reagan administration focused solely on the tax cut aspect of supply-side theory and overlooked the role of monetary policy in producing the desired results.

Supply-Side Theorists Presented Evidence That After the 1964 Tax Cut